Cardano (ADA) climbed to new highs in the recent bull run with the year to date gains at nearly 500%. But after establishing the all-time high at $1.54, the cryptocurrency succumbed to bearish pressures. Currently, on a downward trajectory, Cardano stands at $1.04. The market sentiment for Cardano has turned bearish with twelve of the twenty-six technical indicators giving out a sell signal, ten at neutral and only four at buy signal.
Cardano (ADA) Technical Analysis
According to the analysis of trader Harison HBN, Cardano has broken out of a triangle formation – confirming the bearish trend of the coin. Per the trader, Cardano is likely to continue to fall until it establishes strong support. Cardano (ADA) is expected to stabilize at the price level of $0.74 which lies parallel to the 0.618 Fibonacci level. If the support is established at this point, Cardano will regain its bullish momentum and start off on an upward trajectory. The trader has set a price target of $2.41 for Cardano.
What is going on in the Cardano sphere?
The recent fall in the cryptocurrency’s price can also be attributed to the allegations made against Cardano. Bankless podcast co-owner David Hoffman has called Cardano a “scam” in his podcast. The founder of Cardano (ADA) Charles Hoskinson took to Twitter to negate the allegations. Hoskinson also bashed the podcast co-owner saying calling the developers of Cardano criminals is not the same as being skeptical about the cryptocurrency. Hoskinson has also hinted towards accusation being the reason why Cardano is not doing well.
Where on one hand Cardano is suffering from bearish momentum on account of uncertainty regarding the project, on the other hand, the cryptocurrency is seeing increasing adoption. Bitcasino, the world’s first Bitcoin-based casino operator has added Cardano as a mode of payment. Cardano (ADA) holders can now access a wide variety of games at the casino.
Cardano (ADA) was designed to be better than Ethereum but so far, it has lagged. But things may change soon as the cryptocurrency’s next major upgrade is under works which will give Cardano smart contracts capabilities. The founder has also hinted towards bringing NFT marketplaces to the Cardano blockchain. These developments may set Cardano on track to compete with the queen of the market, Ethereum.